Overview

Download the data used to create this report from the Ontario open data catalogue.

Table 1: Regular gasoline and diesel provincial average retail prices ($/L)
Regular gasoline $1.01
Diesel $1.00

Source: Ministry of Energy fuel prices.

Table 2: Natural gas spot price averages ($/Gigajoule (GJ))
Dawn (ON) $2.78
Henry Hub (US) $3.12
AECO (AB) $2.49

Source: Dawn and AECO from Canadian Enerdata Ltd.; Henry Hub from U.S. Energy Information Administration.

Table 3: Natural gas prices with storage and transportation costs (¢/m3)
Enbridge Gas Inc. Enbridge Gas Distribution (EGD) Zone 13.88¢
Union Gas (Union) North East Zone 19.31¢
Union North West Zone 17.35¢
Union South Zone 13.63¢
EPCOR Aylmer 13.31¢

Source: OEB Natural Gas Rates effective October 1, 2020.

Ontario natural gas storage level (at quarter end)

301.1 Petajoule (PJ) (closing inventories, December 2020)

Source: Statistics Canada.

In Ontario, natural gas is stored primarily at the Dawn hub near Sarnia.

Natural gas transmission infrastructure

A map showing natural gas pipelines in Ontario.

This map displays Ontario's Natural Gas Transmission infrastructure, including the TC Energy Mainline, Enbridge Gas Inc., storage area, and interconnection points.

Regular gasoline retail prices

Table 4: Q4 Ontario average regular gasoline retail prices ($/L)
Year (Q4 ) Ontario average Southern Ontario average Northern Ontario average Toronto average Ottawa Sudbury Thunder Bay
2011 1.281 1.217 1.2732 1.28 1.207 1.2631 1.2632
2012 1.238 1.227 1.313 1.28 1.214 1.2932 1.3335
2013 1.263 1.259 1.325 1.3 1.249 1.324 1.317
2014 1.1232 1.131 1.2039 1.32 1.0729 1.1738 1.2441
2015 1.0011 01.991 1.0819 1.0112 01.9608 1.0415 1.1524
2016 1.031 1.02 1.067 1.041 10.0198 1.073 1.0715
2020 1.014 1.003 1.0911 1.013 1.002 1.068 1.157
2017 1.192 1.182 1.2216 1.194 1.108 1.195 1.2617
2018 1.1332 1.1231 1.2338 1.1433 1.0726 1.1836 1.3445
2019 1.1721 1.162 1.237 1.172 1.149 1.1925 1.2934
2020 1.014 1.003 1.0911 1.013 1.002 1.068 1.157

Source: ENDM. All prices in Current Dollars per litre. Provincial, Southern and Northern Ontario averages are weighted by population.
Fuels price survey information

Toronto footnote 1 regular unleaded gasoline retail prices in Q4 2020 were 15.9 cents per litre (¢/L) lower than in Q4 2019. This was the result of lower crude oil costs (-9.8 ¢/L), lower wholesale margins (-5.7 ¢/L), and lower retail margins ((-0.8 ¢/L) plus applicable taxes (+0.4 ¢/L, or 2.2 ¢/L federal carbon tax footnote 2 minus 1.8 ¢/L HST). The reduction in crude oil costs includes a decrease of 0.4 ¢/L due to a 1% increase in the value of the Canadian dollar relative to the U.S. dollar from Q4 2019 to Q4 2020. Canadian crude oil and wholesale gasoline costs are affected by the CDN/US exchange rate because these commodities are traded on a North American and international basis.

Note: Retail gasoline prices are affected by crude oil prices, wholesale gasoline prices, and competition in the local retail gasoline market. Prices vary from city to city because of differences in market size and structure, costs, and the degree of local competition.

Ontario average retail gasoline price ($/L)

A bar graph showing average gasoline prices in Ontario.

This bar graph displays the average regular gasoline price in Ontario by quarter between Q4 2019 and Q4 2020, in dollars per litre.

Pump price revenue shares, regular unleaded, Toronto

A bar graph comparing gasoline prices in Ontario.

This bar graph displays a comparison of the average regular gasoline prices in Ontario for Q4 2019 and Q4 2020, in dollars per litre.

Retail diesel prices

Table 5: Q4 Ontario average regular diesel retail prices ($/L)
Year (Q4) Ontario average Southern Ontario average Northern Ontario average Toronto average Ottawa Sudbury Thunder Bay
2011 1.273 1.273 1.3024 1.273 1.294 1.295 1.3324
2012 1.241 1.231 1.275 1.231 1.252 1.253 1.3127
2013 1.3025 1.295 1.3429 1.295 1.3127 1.3328 1.383
2014 1.228 1.217 1.2532 1.217 1.229 1.2228 1.328
2015 1.025 1.014 1.058 1.025 1.014 1.035 1.10
2016 0.993 0.983 1.010.98 0.993 0.982 0.982 1.074
2017 1.1403 1.1402 1.1906 1.1402 1.1402 1.1504 1.2609
2018 1.259 1.248 1.303 1.248 1.259 1.243 1.367
2019 1.2417 1.2416 1.292 1.2416 1.2517 1.2516 1.3829
2020 01.0098 10.0097 1.052 1.000.97 1.000.98 1.010.99 1.1306

Source: ENDM. All prices in Current Dollars per litre. Provincial, Southern and Northern Ontario averages are weighted by population.
Fuels price survey information

Toronto footnote 3 retail diesel prices in Q4 2020 were 25.1 ¢/L lower than in Q4 2019. This was the result of lower wholesale margins (-13.5 ¢/L), ) lower crude oil costs (-9.8 ¢/L), and lower retail margins (-1.7 ¢/L), plus applicable taxes (-0.2 ¢/L, or 2.7 ¢/L federal carbon tax footnote 4 minus 2.9 ¢/L HST). The reduction in crude oil costs includes a decrease of 0.4 ¢/L due to a 1% increase in the value of the Canadian dollar relative to the U.S. dollar from Q4 2019 to Q4 2020. Canadian crude oil and wholesale diesel costs are affected by the CDN/US exchange rate because these commodities are traded on a North American and international basis.

Note: Retail diesel prices are affected by crude oil prices, wholesale diesel prices, and competition in the local retail diesel market. Prices vary from city to city because of differences in market size and structure, costs, and the degree of local competition.

Ontario average retail diesel price ($/L)

A bar graph showing average diesel prices in Ontario.

This bar graph displays the average regular diesel price in Ontario by quarter between Q4 2019 and Q4 2020, in dollars per litre.

Pump price revenue shares, ultra-low sulphur diesel, Toronto

A bar graph comparing diesel prices in Ontario.

This bar graph displays a comparison of the average regular diesel prices in Ontario for Q4 2019 and Q4 2020, in dollars per litre.

Natural gas prices with storage and transportation costs for Enbridge Gas Inc., and EPCOR

Table 6: Q4 Natural gas effective price for Enbridge and EPCOR (¢/m3)
Q4 ¢/m3 2016 2017 2018 2019 2020
Enbridge Gas Inc. EGD Zone footnote 5 18.42 17.87 17.43 15.86 13.88
Enbridge Gas Inc. Union North East Zone footnote 6 21.56 25.36 24.35 19.70 19.31
Enbridge Gas Inc. Union North West Zone footnote 7 18.85 21.11 17.51 16.27 17.35
Enbridge Gas Inc. Union South Zone footnote 8 15.80 17.90 15.88 14.07 13.63
EPCOR Aylmer footnote 9 16.69 17.77 16.05 14.90 13.31
EPCOR South Bruce footnote 9 n/a n/a n/a n/a 12.99

Source: OEB Natural Gas Rates effective October 1, 2020.

Ontario's OEB rate-regulated natural gas rate zones

A map showing areas with natural gas in Ontario.

Source: Enbridge Gas Inc, ENDM.

A map showing the regions of Ontario with access to Ontario Energy Board rate regulated natural gas and where each rate zone is.

Ontario has six primary natural gas rate zones, which are rate-regulated by the Ontario Energy Board (OEB). Kitchener Utilities, and Utilities Kingston also operate in Ontario, but are not rate-regulated by the OEB.

Each quarter, OEB rate-regulated natural gas utilities adjust their gas supply charges based on a forecast of natural gas market prices over the next 12 months. Some components of these rates, such as the transportation charge, may change at the same time. Other components follow a different timeline, like delivery rates, which generally change once a year. Additionally, the "gas supply cost adjustment" is updated through the OEB's Quarterly Rate Adjustment Mechanism (QRAM), footnote 10 which captures any differences between forecast and actual commodity costs.

Following approval from the OEB, effective January 1, 2017, the price for the Union South Rate zone combined commodity and transportation costs into one gas supply charge going forward. For consistency of reporting, storage and transportation costs have been included in this section for all rate zones. footnote 11 Prices listed in this section do not include: the monthly customer charge, the federal carbon tax, delivery charges, or any System Expansion Surcharges.

Effective October 1, 2018, the OEB removed provincial cap-and-trade costs in conjunction with the QRAM for Q4 2018. The removal of cap-and-trade costs resulted in a reduction of about 3.3 ¢/m3 from the delivery charge component of natural gas bills.

Effective January 1, 2019, Enbridge Gas Distribution (EGD) and Union Gas (Union) amalgamated to become Enbridge Gas Inc., however EGD and Union will continue to operate as distinct rate zones for the immediate term.

Effective October 1, 2020, EPCOR Natural Gas Limited Partnership (ENGLP) commenced the sale and distribution of natural gas for its Southern Bruce operations. On September 24, 2020 the OEB approved ENGLP's application for rates for Southern Bruce.

On April 1, 2019, the federal carbon tax came into effect at a rate of 3.91 ¢/m3 for natural gas. Effective August 1, 2019, the OEB approved the collection of the federal carbon tax through a new line item on natural gas bills. The federal carbon tax was therefore absent from Ontario natural gas bills during Q4 2019. Effective April 1, 2020, the federal carbon tax increased to 5.87 ¢/m3 for natural gas.

Natural gas price, including storage and transportation by quarter (¢/m3)

Series of bar graphs showing natural gas prices.

Source: Ontario Energy Board, Enbridge Gas Inc.

These bar graphs display natural gas prices, including storage and transportation, in cents per cubic metre, for each quarter from Q4 2019 to Q4 2020. The prices are for the EGD Zone, Union North East Zone, Union North West Zone, Union South Zone and EPCOR.

Average natural gas spot prices

Monthly average natural gas spot prices at select trading hubs ($/GJ)

A line graph showing natural gas trading prices.

Source: Dawn and AECO from Canadian Enerdata Ltd.; Henry Hub from U.S. Energy Information Administration; forecasts from Deloitte Price Forecast - Oil, Natural Gas, & Chemicals - Dec 30, 2020. Forecast prices are in "Current" dollars, prior to unit conversion and dollar exchange.

Note: Prices for Dawn, Henry Hub, and AECO between Jan. 2019 and September 2019 are based upon daily closing spot prices. Prices prior to Jan 2019, and between September 2019 and May 2020, Dawn and AECO are based upon daily traded averages. As of June 2020, the monthly Dawn is based upon the month ahead price.

The line graph displays the monthly average natural gas spot prices at Dawn (ON), Henry Hub (US) and AECO (AB), in dollars per gigajoule, from Jan 2018 to Dec 2020, with an additional forecast for 2021 and 2022.

Quarterly average natural gas spot prices at select trading hubs ($/GJ)

Table 7: Quarterly Average Natural Gas Spot Prices at Select Trading Hubs ($/GJ)
Trading Hub Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Dawn (ON) 2.80 2.23 2.10 2.31 2.78
Henry Hub (US) 2.99 2.45 2.15 2.52 3.12
AECO (AB) 2.33 1.93 1.89 2.14 2.49

Source: Dawn and AECO from Canadian Enerdata Ltd.; Henry Hub from U.S. Energy Information Administration.

Note: Prices for Dawn, Henry Hub, and AECO between January 2019 and September 2019 are based upon daily closing spot prices. Prices prior to January 2019, and between September 2019 and May 2020, Dawn and AECO are based upon daily traded averages. As of June 2020, the monthly Dawn is based upon the month ahead price.

Annual Average Natural Gas Spot Prices at Select Trading Hubs ($/GJ)

Table 8: Annual Average Natural Gas Spot Prices at Select Trading Hubs ($/GJ)
Trading Hub 2019 2020
Dawn (ON) 3.03 2.36
Henry Hub (US) 3.22 2.56
AECO (AB) 1.69 2.11

Source: Dawn and AECO from Canadian Enerdata Ltd.; Henry Hub from U.S. Energy Information Administration.

Note: Prices for Dawn, Henry Hub, and AECO between Jan. 2019 and September 2019 are based upon daily closing spot prices. Prices prior to Jan 2019, and between September 2019 and May 2020, Dawn and AECO are based upon daily traded averages. As of June 2020, the monthly Dawn is based upon the month ahead price.

Natural Gas Price Forecasts for Select Trading Hubs, 2021-2022 ($/GJ)

Table 9: Natural Gas Price Forecasts for Select Trading Hubs, 2021-2022 ($/GJ)
Trading Hub 2021 2022 (YTD)
Dawn (ON) 3.13 3.27
Henry Hub (US) 3.30 3.57
AECO (AB) 2.51 2.56

Source: Deloitte Price Forecast - Oil, Natural Gas, & Chemicals - December 30, 2020.

Ontario natural gas storage balances

Monthly closing inventories in Ontario (PJ)

A line graph showing closing inventory of natural gas in Ontario.

Source: Statistics Canada.

Note: Previous editions of this table featured total Eastern Canadian storage levels in billion cubic feet (bcf) and million cubic meteres (mcm).

This line graph displays Ontario natural gas storage balances every quarter from January 2016 to December 2020.

In Ontario, natural gas is stored primarily at Dawn, ON.

According to seasonal patterns, storage levels normally peak in late October or early November as withdrawals for natural gas heating begin to outpace storage injections. Prices are also more likely to see a cyclical rise during the winter heating season. Utilities buy a certain amount of natural gas during the summer months when the price is cheaper. The supply is stored, and then delivered to customers during the colder months.

Average Monthly Natural Gas Bills

While natural gas prices are set quarterly, natural gas customers are billed on a monthly basis. As natural gas consumption patterns change from month to month, so too does the size of a customer's natural gas bill. Therefore, while natural gas rates stay the same over a three month period, the size of the bill can vary based upon the level of consumption, with seasonality being the greatest factor (i.e., heating demand during periods of cold weather).

The natural gas bill for a residential customer in Ontario has five primary components:

  • Customer Charge: a fixed charge that is typically set annually, and is the same every month, regardless of the level of consumption;
  • Gas Supply: a volumetric charge based upon consumption, set quarterly;
  • Delivery Charges: volumetric charges based upon consumption, typically set annually;
  • Federal Carbon Charge (FCC): a volumetric charge based upon consumption, set annually by the federal government; and
  • Harmonised Sales Tax (HST): a 13% tax on the retail price (i.e., the combination of all charges mentioned above).
  • Note: Q4 2020 rates in Enbridge and Union rate zones included an "Other Adjustment" to account for the under-collection of the federal carbon tax. The federal carbon tax commenced in April 2019 but was not recovered in rates until August 2019.

Average Monthly EGD Bill

A graph showing average Monthly EGD Bill

Average Monthly Union NE Bill

A graph showing average Monthly Union NE Bill

Average Monthly Union NW Bill

A graph showing average Monthly Union NW Bill

Average Monthly Union S Bill

A graph showing average Monthly Union S Bill

Average Monthly EPCOR Aylmer Bill

A graph showing average Monthly EPCOR Alymer Bill

Source: OEB

Note: All data based on averages of monthly consumption provided in OEB Bill Calculator for residential customers.

Propane Market

Ontario's propane market is not subject to economic regulation or oversight by the Ontario Energy Board (OEB). Wholesale propane commodity prices are determined in a competitive, integrated North American market. In Ontario, propane distributors compete to supply end-users and retail prices are set through transactions between a distributor and a customer based on a number of factors including: local supply and demand; time of year; and transportation costs.

Mont Belvieu, Texas is the benchmark pricing point for North American propane markets, as it is the largest producing region.

Sarnia has significant underground storage infrastructure for propane and is a wholesale storage and trading hub for propane markets in Eastern Canadian and the U.S. Great Lakes region. Demand for propane is highly seasonal so storage inventories are replenished in the summer months to be drawn upon for the next winter heating season.

Similar to natural gas, propane prices tend to decrease in the summer months, and increase in the winter heating season. The length and severity of the winter will typically have a corresponding impact on the price of propane.

Due to the unregulated nature of the propane market and limited pricing data from private sector suppliers, ENDM does not maintain historical retail prices for the residential propane market.

Monthly Average Wholesale Propane Prices

A graph showing monthly average of wholesale propane prices

Source: U.S. Energy Information Administration, Kent Group Ltd..

Eastern Canadian Propane Inventories

Monthly Propane Storage Supplies for Eastern Canada

A graph showing Monthly Propane Storage Supplies for Eastern Canada

Source: Canada Energy Regulator.


Footnotes

  • footnote[1] Back to paragraph Toronto was selected for the pump price analysis because it is the largest gasoline market in Ontario.
  • footnote[2] Back to paragraph The federal carbon tax on gasoline came into effect on April 1, 2019 at a rate of 4.4 cents per litre. Effective April 1, 2020, the federal carbon tax Increased to 6.6 cents per litre of gasoline.
  • footnote[3] Back to paragraph Toronto was selected for the pump price analysis because it is the largest diesel market in Ontario.
  • footnote[4] Back to paragraph The federal carbon tax on diesel came into effect on April 1, 2019 at a rate of 5.4 cents per litre. Effective April 1, 2020, the federal carbon tax Increased to 8.1 cents per litre of gasoline.
  • footnote[5] Back to paragraph EGD residential Rate Number 1.
  • footnote[6] Back to paragraph Union residential North East Rate Zone 01A. Note: 2016 rates are a combined average of the former "Northern" and "Eastern" rate zones.
  • footnote[7] Back to paragraph Union residential North West Rate Zone 01A. Note: 2016 rates are a combined average of the former "Fort Frances", "Western", and "Northern" rate zones.
  • footnote[8] Back to paragraph Union residential Southern Rate Zone M1.
  • footnote[9] Back to paragraph In 2017, Natural Resource Gas Limited (NRG) transferred its natural gas distribution system assets to EPCOR
  • footnote[10] Back to paragraph For more information on the OEB's QRAM prices please see: Natural gas rates page on the OEB website
  • footnote[11] Back to paragraph EGD pricing includes an estimated storage component.
Updated: September 28, 2021
Published: September 08, 2021